FDX FedEx Corp

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): December 19, 2024

 

FedEx Corporation

(Exact name of registrant as specified in its charter)

 

Commission File Number 1-15829

 

Delaware		62-1721435
(State or other jurisdiction of		(IRS Employer
incorporation)		Identification No.)
942 South Shady Grove Road, Memphis, Tennessee		38120
(Address of principal executive offices)		(ZIP Code)

 

Registrant’s telephone number, including area code: (901) 818-7500

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class		Trading Symbol		Name of each exchange on which registered
Common Stock, par value $0.10 per share		FDX		New York Stock Exchange
0.450% Notes due 2025		FDX 25A		New York Stock Exchange
1.625% Notes due 2027		FDX 27		New York Stock Exchange
0.450% Notes due 2029		FDX 29A		New York Stock Exchange
1.300% Notes due 2031		FDX 31		New York Stock Exchange
0.950% Notes due 2033		FDX 33		New York Stock Exchange

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

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EXPLANATORY NOTE

The information in this Report, including Exhibit 99.1, is being furnished pursuant to Item 2.02 of Form 8-K and General Instruction B.2 thereunder. Such information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended.

SECTION 2. FINANCIAL INFORMATION.

Item 2.02. Results of Operations and Financial Condition.

Attached as Exhibit 99.1 and incorporated herein by reference is a copy of FedEx Corporation’s press release, dated December 19, 2024, announcing its financial results for the fiscal quarter ended November 30, 2024.

SECTION 9. FINANCIAL STATEMENTS AND EXHIBITS.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

 

Exhibit Number		Description
99.1		Press Release of FedEx Corporation dated December 19, 2024.
104		Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document).

 

 

 

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

		FedEx Corporation
Date: December 19, 2024		By:		/s/ Guy M. Erwin II
				Guy M. Erwin II
				Corporate Vice President –
				Chief Accounting Officer

 

 

 

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Exhibit 99.1

 

 

 

FedEx Reports Second Quarter Diluted EPS of $3.03

and Adjusted Diluted EPS of $4.05

$1 Billion Share Repurchases Completed During Quarter

Full-Year Fiscal 2025 Earnings Outlook Revised

FedEx Completes FedEx Freight Assessment, Will Pursue Full Separation and Create a New Publicly Traded LTL Company

 

MEMPHIS, Tenn., December 19, 2024 ... FedEx Corp. (NYSE: FDX) today reported the following consolidated results for the second quarter ended November 30 (adjusted measures exclude the item listed below):

 

		Fiscal 2025				Fiscal 2024
		As Reported (GAAP)		Adjusted (non-GAAP)		As Reported (GAAP)		Adjusted (non-GAAP)
Revenue		$22.0 billion		$22.0 billion		$22.2 billion		$22.2 billion
Operating income		$1.05 billion		$1.38 billion		$1.28 billion		$1.42 billion
Operating margin		4.8%		6.3%		5.8%		6.4%
Net income		$0.74 billion		$0.99 billion		$0.90 billion		$1.01 billion
Diluted EPS		$3.03		$4.05		$3.55		$3.99

 

This year’s and last year’s quarterly consolidated results have been adjusted for:

 

Impact per diluted share		Fiscal 2025		Fiscal 2024
Business optimization costs		$1.02		$0.44

 

“Our second quarter results demonstrate that our efforts to transform our operations are working. The Federal Express segment delivered operating profit growth despite several headwinds, including the continued weak U.S. domestic demand environment as well as the expiration of our U.S. Postal Service contract,” said Raj Subramaniam, FedEx Corp. president and chief executive officer. “I am proud of the team for continuing to deliver solid service to our customers throughout the Peak season, as we create a more flexible, efficient, and intelligent network.”

 

Consolidated operating results were negatively affected by lower-than-expected FedEx Freight revenue and profit, as sustained weakness in U.S. industrial production continued to pressure less-than-truckload industry demand. The lower FedEx Freight results were mostly offset by cost reduction benefits at Federal Express from DRIVE program initiatives and higher base yields at each transportation segment.

 

Federal Express segment adjusted operating results improved during the quarter, driven by cost reduction benefits from DRIVE, higher base yield, and increased

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international export volume. These factors were partially offset by higher wage and purchased transportation rates, the expiration of the U.S. Postal Service contract for transportation services on September 29, 2024, and U.S. domestic package demand weakness.

 

FedEx Freight segment operating results decreased during the quarter due to fewer shipments, lower fuel surcharges, and reduced weight per shipment, partially offset by higher base yield. Last year's second quarter operating income included a

$30 million gain on the sale of facilities.

 

Share Repurchase Program

 

FedEx completed $1 billion in share repurchases via open market and accelerated share repurchase transactions during the quarter. Approximately 3.7 million shares were delivered from the transactions, with the decrease in outstanding shares benefiting second quarter results by $0.07 per diluted share.

 

The company expects to repurchase an additional $500 million of common stock during fiscal 2025, for a buyback total of $2.5 billion. As of November 30, 2024,

$3.1 billion remained available for repurchases under the company's 2024 stock repurchase authorization.

 

Cash on-hand as of November 30, 2024, was $5.0 billion.

 

FedEx Freight Assessment

 

Earlier today, FedEx announced that its Board of Directors has concluded a comprehensive assessment of the role of FedEx Freight as part of its portfolio and has decided to pursue a full separation through the capital markets, creating a new publicly traded company.

 

The separation is expected to be achieved in a tax-efficient manner for FedEx stockholders and executed within the next 18 months.

 

Additional information can be found in the related press release at investors.fedex.com.

 

Outlook

 

FedEx is unable to forecast the fiscal 2025 mark-to-market ("MTM") retirement plans accounting adjustments. As a result, FedEx is unable to provide a fiscal 2025 earnings per share ("EPS") or effective tax rate ("ETR") outlook on a GAAP basis and is relying on the exemption provided by the Securities and Exchange Commission ("SEC"). It is reasonably possible that the fiscal 2025 MTM retirement plans accounting adjustments could have a material effect on fiscal 2025 consolidated financial results and ETR.

 

 

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FedEx is revising its fiscal 2025 revenue and earnings forecasts, and now expects:

 

 

FedEx is reaffirming its forecast of:

 

 

These forecasts assume the company's current economic forecast and fuel price expectations, successful completion of the planned stock repurchases, and no additional adverse economic or geopolitical developments. FedEx’s ETR and EPS forecasts are based on current law and related regulations and guidance.

 

“I remain confident FedEx will continue to grow earnings this year despite the challenging demand environment, as we focus on transforming operations and improving revenue quality,” said John Dietrich, FedEx Corp. executive vice president and chief financial officer. “We are resolute in our strategy to prudently manage our capital expenditures, and expect to deliver on our commitment to return $3.8 billion to stockholders this fiscal year.”

 

Corporate Overview

 

FedEx Corp. (NYSE: FDX) provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. With annual revenue of $87 billion, the company offers integrated business solutions utilizing its flexible, efficient, and intelligent global network. Consistently ranked among the world's most admired and trusted employers, FedEx inspires its more than 500,000 employees to remain focused on safety, the highest ethical and professional standards and the needs of their customers and communities. FedEx is committed to connecting people and possibilities around the world responsibly and resourcefully, with a goal to achieve carbon-neutral operations by 2040. To learn more, please visit fedex.com/about.

 

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Additional information and operating data are contained in the company’s annual report, Form 10-K, Form 10-Qs, Form 8-Ks and Statistical Books. These materials, as well as a webcast of the earnings release conference call to be held at 5:30 p.m. EST on December 19, are available on the company’s website at investors.fedex.com. A replay of the conference call webcast will be posted on our website following the call.

 

The Investor Relations page of our website, investors.fedex.com, contains a significant amount of information about FedEx, including our SEC filings and financial and other information for investors. The information that we post on our Investor Relations website could be deemed to be material information. We encourage investors, the media and others interested in the company to visit this website from time to time, as information is updated and new information is posted.

 

Certain statements in this press release may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act, such as statements regarding expected cost savings, the optimization of our network through Network 2.0, the planned tax-free full separation of the FedEx Freight business into a new independent publicly traded company (the "FedEx Freight Separation"), future financial targets, business strategies, management’s views with respect to future events and financial performance, and the assumptions underlying such expected cost savings, targets, strategies, and statements. Forward-looking statements include those preceded by, followed by or that include the words “will,” “may,” “could,” “would,” “should,” “believes,” “expects,” “forecasts,” “anticipates,” “plans,” “estimates,” “targets,” “projects,” “intends” or similar expressions. Such forward-looking statements are subject to risks, uncertainties and other factors which could cause actual results to differ materially from historical experience or from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to, economic conditions in the global markets in which we operate; our ability to successfully implement our business strategy and global transformation program and optimize our network through Network 2.0, effectively respond to changes in market dynamics, and achieve the anticipated benefits of such strategies and actions; our ability to achieve our cost reduction initiatives and financial performance goals; the timing and amount of any costs or benefits or any specific outcome, transaction, or change (of which there can be no assurance), or the terms, timing, and structure thereof, related to our global transformation program and other ongoing reviews and initiatives; a significant data breach or other disruption to our technology infrastructure; our ability to successfully implement the FedEx Freight Separation and achieve the anticipated benefits of such transaction; damage to our reputation or loss of brand equity; our ability to remove costs related to services provided to the U.S. Postal Service ("USPS") under the contract for Federal Express Corporation to provide the USPS domestic transportation services that expired on September 29, 2024; our ability to meet our labor and purchased transportation needs while controlling related costs; failure of third-party service providers to perform as expected, or disruptions in our relationships with those providers or their provision of services to FedEx; the effects of a widespread outbreak of an illness or any other communicable disease or public health crises; anti-trade measures and additional changes in international trade

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policies and relations; the effect of any international conflicts or terrorist activities, including as a result of the current conflicts between Russia and Ukraine and in the Middle East; changes in fuel prices or currency exchange rates, including significant increases in fuel prices as a result of the ongoing conflicts between Russia and Ukraine and in the Middle East and other geopolitical and regulatory developments; the effect of intense competition; our ability to match capacity to shifting volume levels; an increase in self-insurance accruals and expenses; failure to receive or collect expected insurance coverage; our ability to effectively operate, integrate, leverage, and grow acquired businesses and realize the anticipated benefits of acquisitions and other strategic transactions; noncash impairment charges related to our goodwill and certain deferred tax assets; the future rate of e-commerce growth; evolving or new U.S. domestic or international laws and government regulations, policies, and actions; future guidance, regulations, interpretations, challenges, or judicial decisions related to our tax positions; labor-related disruptions; legal challenges or changes related to service providers contracted to conduct certain linehaul and pickup-and-delivery operations and the drivers providing services on their behalf and the coverage of U.S. employees at Federal Express Corporation under the Railway Labor Act of 1926, as amended; our ability to quickly and effectively restore operations following adverse weather or a localized disaster or disturbance in a key geography; any liability resulting from and the costs of defending against litigation; our ability to achieve our goal of carbon-neutral operations by 2040; and other factors which can be found in FedEx Corp.’s and its subsidiaries’ press releases and FedEx Corp.’s filings with the SEC, including our Annual Report on Form 10-K for the fiscal year ended May 31, 2024, and subsequently filed Quarterly Reports on Form 10-Q. Any forward-looking statement speaks only as of the date on which it is made. We do not undertake or assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

 

Media Contact:

Caitlin Maier

901-434-8100

mediarelations@fedex.com

 

Investor Relations Contact:

Jeni Hollander

901-818-7200

ir@fedex.com

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RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES

TO GAAP FINANCIAL MEASURES

 

Second Quarter Fiscal 2025 and Fiscal 2024 Results

 

The company reports its financial results in accordance with accounting principles generally accepted in the United States (“GAAP” or “reported”). We have supplemented the reporting of our financial information determined in accordance with GAAP with certain non-GAAP (or “adjusted”) financial measures, including our adjusted second quarter fiscal 2025 and 2024 consolidated operating income and margin, income taxes, net income and diluted earnings per share and adjusted second quarter fiscal 2025 and 2024 Federal Express segment operating income and margin. These financial measures have been adjusted to exclude the effects of business optimization costs incurred in fiscal 2025 and 2024.

 

In fiscal 2023, FedEx announced DRIVE, a comprehensive program to improve the company’s long-term profitability. This program includes a business optimization plan to drive efficiency among our transportation segments, lower our overhead and support costs, and transform our digital capabilities. We incurred costs associated with our business optimization initiatives in the second quarter of fiscal 2025 and fiscal 2024. These costs were primarily related to professional services and severance.

 

Costs related to business optimization initiatives are excluded from our second quarter fiscal 2025 and 2024 consolidated and Federal Express segment non-GAAP financial measures because they are unrelated to our core operating performance and to assist investors with assessing trends in our underlying businesses.

 

The income tax effect of the business optimization initiatives is calculated based upon the tax laws and statutory income tax rates applicable in the tax jurisdiction(s) of the underlying non-GAAP adjustment. The impact of these non-GAAP items on the company’s effective tax rate represents the difference in the effective tax rate calculated with and without the non-GAAP adjustment.

 

We believe these adjusted financial measures facilitate analysis and comparisons of our ongoing business operations because they exclude items that may not be indicative of, or are unrelated to, the company’s and our business segments’ core operating performance, and may assist investors with comparisons to prior periods and assessing trends in our underlying businesses. These adjustments are consistent with how management views our businesses. Management uses these non-GAAP financial measures in making financial, operating and planning decisions and evaluating the company’s and each business segment’s ongoing performance.

 

Our non-GAAP financial measures are intended to supplement and should be read together with, and are not an alternative or substitute for, and should not be considered superior to, our reported financial results. Accordingly, users of our financial statements should not place undue reliance on these non-GAAP financial measures. Because non-GAAP financial measures are not standardized, it may not

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be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names. As required by SEC rules, the tables below present a reconciliation of our presented non-GAAP financial measures to the most directly comparable GAAP measures.

 

Fiscal 2025 Earnings Per Share and Effective Tax Rate Forecasts

 

Our fiscal 2025 EPS forecast is a non-GAAP financial measure because it excludes fiscal 2025 MTM retirement plans accounting adjustments and estimated costs related to business optimization initiatives in fiscal 2025. Our fiscal 2025 ETR forecast is a non-GAAP financial measure because it excludes the effect of fiscal 2025 MTM retirement plans accounting adjustments.

 

We have provided these non-GAAP financial measures for the same reasons that were outlined above for historical non-GAAP measures. Costs related to business optimization initiatives are excluded from our fiscal 2025 EPS forecast for the same reasons described above for historical non-GAAP measures.

 

We are unable to predict the amount of the MTM retirement plans accounting adjustments, as they are significantly affected by changes in interest rates and the financial markets, so such adjustments are not included in our fiscal 2025 EPS and ETR forecasts. For this reason, a full reconciliation of our fiscal 2025 EPS and ETR forecasts to the most directly comparable GAAP measures is impracticable. It is reasonably possible, however, that our fiscal 2025 MTM retirement plans accounting adjustments could have a material effect on our fiscal 2025 consolidated financial results and ETR.

 

The table included below titled “Fiscal 2025 Diluted Earnings Per Share Forecast” outlines the effects of the items that are excluded from our fiscal 2025 EPS forecast, other than the MTM retirement plans accounting adjustments.

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Second Quarter Fiscal 2025

 

FedEx Corporation

 

		Operating				Income		Net		Diluted Earnings
Dollars in millions, except EPS		Income		Margin		Taxes1		Income2		Per Share
GAAP measure		$1,052		4.8%		$240		$741		$3.03
Business optimization costs3		326		1.5%		77		249		1.02
Non-GAAP measure		$1,378		6.3%		$317		$990		$4.05

 

Federal Express Segment

 

		Operating
Dollars in millions		Income		Margin
GAAP measure		$1,052		5.6%
Business optimization costs		206		1.1%
Non-GAAP measure		$1,258		6.7%

 

 

Second Quarter Fiscal 2024

 

FedEx Corporation

 

		Operating				Income		Net		Diluted Earnings
Dollars in millions, except EPS		Income		Margin4		Taxes1		Income2		Per Share
GAAP measure		$1,276		5.8%		$302		$900		$3.55
Business optimization costs3		145		0.7%		35		110		0.44
Non-GAAP measure		$1,421		6.4%		$337		$1,010		$3.99

 

Federal Express Segment

 

		Operating
Dollars in millions		Income		Margin
GAAP measure		$1,035		5.5%
Business optimization costs		77		0.4%
Non-GAAP measure		$1,112		5.9%

 

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Fiscal 2025 Diluted Earnings Per Share Forecast

 

Dollars in millions, except EPS		Adjustments		Diluted Earnings Per Share
Diluted earnings per share before     MTM retirement plans accounting     adjustments (non-GAAP)5				$16.45 to $17.45
Business optimization costs		$815
Income tax effect1		(195)
Net of tax effect		$620		2.55
Diluted earnings per share with adjustments     (non-GAAP)5				$19.00 to $20.00

 

Notes:

 

1 – Income taxes are based on the company’s approximate statutory tax rates applicable to each transaction.

2 – Effect of “total other (expense) income” on net income amount not shown.

3 – These expenses were recognized at Federal Express, as well as Corporate, other, and eliminations.

4 – Does not sum to total due to rounding.

5 – The MTM retirement plans accounting adjustments, which are impracticable to calculate at this time, are excluded.

 

# # #

 

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FEDEX CORP. FINANCIAL HIGHLIGHTS

 

Second Quarter Fiscal 2025

(In millions, except earnings per share)

(Unaudited)

 

		Three Months Ended November 30,												Six Months Ended November 30,
		2024				2023				Percent Change				2024				2023				Percent Change
Revenue:
Federal Express segment		$	18,841			$	18,773				—			$	37,146			$	37,199				—
FedEx Freight segment			2,177				2,452				(11	)			4,506				4,837				(7	)
Other and eliminations1			949				940				1				1,894				1,810				5
Total Revenue			21,967				22,165				(1	)			43,546				43,846				(1	)
Operating Expenses:
Salaries and employee benefits			7,879				7,833				1				15,664				15,618				—
Purchased transportation			5,500				5,395				2				10,775				10,431				3
Rentals and landing fees			1,168				1,138				3				2,329				2,289				2
Depreciation and amortization			1,063				1,040				2				2,141				2,111				1
Fuel			947				1,328				(29	)			2,022				2,429				(17	)
Maintenance and repairs			831				854				(3	)			1,660				1,678				(1	)
Business optimization costs			326				145				125				454				250				82
Other			3,201				3,156				1				6,369				6,279				1
Total Operating Expenses			20,915				20,889				—				41,414				41,085				1
Operating income (loss):
Federal Express segment			1,052				1,035				2				2,005				2,341				(14	)
FedEx Freight segment			312				491				(36	)			751				973				(23	)
Corporate, other, and eliminations1			(312	)			(250	)			25				(624	)			(553	)			13
Total Operating Income			1,052				1,276				(18	)			2,132				2,761				(23	)
Other (Expense) Income:
Interest, net			(102	)			(97	)			5				(186	)			(188	)			(1	)
Other retirement plans, net			50				41				22				99				80				24
Other, net			(19	)			(18	)			6				(8	)			(28	)			(71	)
Total Other (Expense) Income			(71	)			(74	)			(4	)			(95	)			(136	)			(30	)
Income Before Income Taxes			981				1,202				(18	)			2,037				2,625				(22	)
Provision for Income Taxes			240				302				(21	)			502				647				(22	)
Net Income		$	741			$	900				(18	)		$	1,535			$	1,978				(22	)
Diluted Earnings Per Share		$	3.03			$	3.55				(15	)		$	6.24			$	7.79				(20	)
Weighted Average Common and
Common Equivalent Shares			244				253				(4	)			246				254				(3	)
Capital Expenditures		$	818			$	1,305				(37	)		$	1,585			$	2,595				(39	)

 

1 – Includes the FedEx Office, FedEx Logistics, and FedEx Dataworks operating segments.

 

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FEDEX CORP. CONDENSED CONSOLIDATED BALANCE SHEETS

 

Second Quarter Fiscal 2025

(In millions, except share data)

 

		November 30, 2024
		(Unaudited)				May 31, 2024
ASSETS
Current Assets
Cash and cash equivalents		$	5,029			$	6,501
Receivables, less allowances			10,737				10,087
Spare parts, supplies, and fuel, less allowances			620				614
Prepaid expenses and other			1,335				1,005
Total current assets			17,721				18,207
Property and Equipment, at Cost			85,658				84,391
Less accumulated depreciation and amortization			44,652				42,900
Net property and equipment			41,006				41,491
Other Long-Term Assets
Operating lease right-of-use assets, net			16,821				17,115
Goodwill			6,290				6,423
Other assets			3,643				3,771
Total other long-term assets			26,754				27,309
		$	85,481			$	87,007
LIABILITIES AND COMMON STOCKHOLDERS'    INVESTMENT
Current Liabilities
Current portion of long-term debt		$	592			$	68
Accrued salaries and employee benefits			2,710				2,673
Accounts payable			3,896				3,189
Operating lease liabilities			2,536				2,463
Accrued expenses			4,658				4,962
Total current liabilities			14,392				13,355
Long-Term Debt, Less Current Portion			19,433				20,135
Other Long-Term Liabilities
Deferred income taxes			4,436				4,482
Pension, postretirement healthcare, and other benefit obligations			1,571				2,010
Self-insurance accruals			3,825				3,701
Operating lease liabilities			14,713				15,053
Other liabilities			651				689
Total other long-term liabilities			25,196				25,935
Commitments and Contingencies
Common Stockholders' Investment
Common stock, $0.10 par value, 800 million shares authorized			32				32
Additional paid-in capital			4,165				3,988
Retained earnings			39,175				38,649
Accumulated other comprehensive loss			(1,515	)			(1,359	)
Treasury stock, at cost			(15,397	)			(13,728	)
Total common stockholders' investment			26,460				27,582
		$	85,481			$	87,007

 

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FEDEX CORP. CONDENSED CONSOLIDATED

STATEMENTS OF CASH FLOWS

 

Second Quarter Fiscal 2025

(In millions)

(Unaudited)

 

		Six Months Ended November 30,
		2024				2023
Operating Activities:
Net income		$	1,535			$	1,978
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization			2,141				2,111
Other, net			2,048				1,711
Changes in operating assets and liabilities, net			(3,219	)			(1,796	)
Cash provided by operating activities			2,505				4,004
Investing Activities:
Capital expenditures			(1,585	)			(2,595	)
Purchase of investments			(107	)			(75	)
Proceeds from sale of investments			52				—
Proceeds from asset dispositions and other			34				62
Cash used in investing activities			(1,606	)			(2,608	)
Financing Activities:
Principal payments on debt			(47	)			(94	)
Proceeds from stock issuances			440				211
Dividends paid			(676	)			(635	)
Purchase of treasury stock			(2,020	)			(1,000	)
Other			(6	)			-
Cash used in financing activities			(2,309	)			(1,518	)
Effect of exchange rate changes on cash			(62	)			(5	)
Net decrease in cash and cash equivalents			(1,472	)			(127	)
Cash and cash equivalents at beginning of period			6,501				6,856
Cash and cash equivalents at end of period		$	5,029			$	6,729

 

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FEDERAL EXPRESS SEGMENT FINANCIAL HIGHLIGHTS

 

Second Quarter Fiscal 2025

(Dollars in millions)

(Unaudited)

 

		Three Months Ended November 30,												Six Months Ended November 30,
		2024				2023				Percent Change				2024				2023				Percent Change
Revenue:
Package:
U.S. priority		$	2,563			$	2,605				(2	)		$	5,154			$	5,278				(2	)
U.S. deferred			1,199				1,207				(1	)			2,350				2,394				(2	)
U.S. ground			8,256				8,309				(1	)			16,312				16,442				(1	)
Total U.S. domestic package revenue			12,018				12,121				(1	)			23,816				24,114				(1	)
International priority			2,231				2,390				(7	)			4,437				4,717				(6	)
International economy			1,588				1,183				34				2,948				2,300				28
Total international export package revenue			3,819				3,573				7				7,385				7,017				5
International domestic(1)			1,190				1,213				(2	)			2,302				2,353				(2	)
Total package revenue			17,027				16,907				1				33,503				33,484				—
Freight:
U.S.			383				577				(34	)			952				1,154				(18	)
International priority			640				568				13				1,166				1,121				4
International economy			529				470				13				992				942				5
Total freight revenue			1,552				1,615				(4	)			3,110				3,217				(3	)
Other			262				251				4				533				498				7
Total revenue			18,841				18,773				—				37,146				37,199				—
Operating expenses:
Salaries and employee benefits			6,329				6,208				2				12,530				12,379				1
Purchased transportation			5,067				4,980				2				9,868				9,657				2
Rentals and landing fees			987				963				2				1,973				1,938				2
Depreciation and amortization			918				925				(1	)			1,853				1,854				—
Fuel			835				1,164				(28	)			1,789				2,125				(16	)
Maintenance and repairs			715				732				(2	)			1,434				1,454				(1	)
Business optimization costs			206				77				168				249				104				139
Intercompany allocations			(205	)			(168	)			22				(392	)			(343	)			14
Other			2,937				2,857				3				5,837				5,690				3
Total operating expenses			17,789				17,738				—				35,141				34,858				1
Operating income		$	1,052			$	1,035				2			$	2,005			$	2,341				(14	)
Operating margin			5.6	%			5.5	%			10		bp		5.4	%			6.3	%			(90	)	bp

1 – International Domestic revenue relates to international intra-country operations.

 

 

 

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FEDERAL EXPRESS SEGMENT OPERATING HIGHLIGHTS

 

Second Quarter Fiscal 2025

(Unaudited)

 

		Three Months Ended November 30,												Six Months Ended November 30,
		2024				2023				Percent Change				2024				2023				Percent Change
PACKAGE STATISTICS
Avg. daily package volume (ADV) (000s)(1):
U.S. priority			1,603				1,676				(4	)			1,601				1,678				(5	)
U.S. deferred			1,014				1,009				—				991				989				—
U.S. ground commercial			4,309				4,392				(2	)			4,299				4,339				(1	)
U.S. ground home delivery/economy			6,962				6,991				—				6,698				6,696				—
Total U.S. domestic ADV			13,888				14,068				(1	)			13,589				13,702				(1	)
International priority			594				673				(12	)			608				666				(9	)
International economy			586				406				44				538				385				40
Total international export ADV			1,180				1,079				9				1,146				1,051				9
International domestic(2)			2,060				2,085				(1	)			1,941				1,989				(2	)
Total ADV			17,128				17,232				(1	)			16,676				16,742				—
Revenue per package (yield):
U.S. priority		$	25.38			$	24.67				3			$	25.34			$	24.58				3
U.S. deferred			18.76				19.00				(1	)			18.68				18.91				(1	)
U.S. ground			11.63				11.59				—				11.68				11.64				—
U.S. domestic composite			13.73				13.68				—				13.80				13.75				—
International priority			59.59				56.37				6				57.41				55.37				4
International economy			43.03				46.19				(7	)			43.17				46.65				(7	)
International export composite			51.37				52.54				(2	)			50.73				52.17				(3	)
International domestic(2)			9.18				9.24				(1	)			9.34				9.24				1
Composite package yield		$	15.78			$	15.57				1			$	15.82			$	15.62				1
FREIGHT STATISTICS
Average daily freight pounds (000s):
U.S.			2,772				5,663				(51	)			4,056				5,481				(26	)
International priority			4,927				4,472				10				4,694				4,431				6
International economy			12,475				11,857				5				11,584				11,422				1
Total average daily freight pounds			20,174				21,992				(8	)			20,334				21,334				(5	)
Revenue per pound (yield):
U.S.		$	2.19			$	1.62				35			$	1.85			$	1.65				12
International priority			2.06				2.02				2				1.96				1.98				(1	)
International economy			0.67				0.63				6				0.67				0.64				5
Composite freight yield		$	1.22			$	1.17				4			$	1.20			$	1.18				2
Operating weekdays			63				63				—				127				128				(1	)

1 – ADV is calculated on a 5-day-per-week basis.

2 – International Domestic statistics relate to international intra-country operations.

 

 

 

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FEDEX FREIGHT SEGMENT FINANCIAL AND OPERATING HIGHLIGHTS

 

Second Quarter Fiscal 2025

(Dollars in millions)

(Unaudited)

 

		Three Months Ended November 30,												Six Months Ended November 30,
		2024				2023				Percent Change				2024				2023				Percent Change
FINANCIAL HIGHLIGHTS
Revenue		$	2,177			$	2,452				(11	)		$	4,506			$	4,837				(7	)
Operating expenses:
Salaries and employee benefits			976				1,018				(4	)			1,960				2,003				(2	)
Purchased transportation			197				231				(15	)			400				450				(11	)
Rentals			72				70				3				143				139				3
Depreciation and amortization			112				81				38				222				189				17
Fuel			111				164				(32	)			232				303				(23	)
Maintenance and repairs			88				94				(6	)			170				169				1
Intercompany charges			143				134				7				291				273				7
Other			166				169				(2	)			337				338				—
Total operating expenses			1,865				1,961				(5	)			3,755				3,864				(3	)
Operating income		$	312			$	491				(36	)		$	751			$	973				(23	)
Operating margin			14.3	%			20.0	%			(570	)	bp		16.7	%			20.1	%			(340	)	bp
OPERATING STATISTICS
Operating weekdays			62				62				—				126				127				(1	)
Average daily shipments (000s):
Priority			62.5				68.5				(9	)			62.7				67.3				(7	)
Economy			28.5				30.5				(7	)			28.8				29.5				(2	)
Total average daily shipments			91.0				99.0				(8	)			91.5				96.8				(5	)
Weight per shipment (lbs):
Priority			935				975				(4	)			946				982				(4	)
Economy			865				880				(2	)			866				878				(1	)
Composite weight per shipment			913				946				(3	)			921				950				(3	)
Revenue per shipment:
Priority		$	352.84			$	365.55				(3	)		$	358.51			$	359.24				—
Economy			400.00				415.82				(4	)			404.41				411.95				(2	)
Composite revenue per shipment		$	367.60			$	381.05				(4	)		$	372.96			$	375.30				(1	)
Revenue per hundredweight:
Priority		$	37.73			$	37.48				1			$	37.90			$	36.58				4
Economy			46.26				47.26				(2	)			46.69				46.93				(1	)
Composite revenue per hundredweight		$	40.26			$	40.29				—			$	40.50			$	39.49				3

 

 

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v3.24.4

Document and Entity Information	Dec. 19, 2024
Document And Entity Information [Line Items]
Entity Registrant Name	FedEx Corporation
Amendment Flag	false
Entity Central Index Key	0001048911
Document Type	8-K
Document Period End Date	Dec. 19, 2024
Entity File Number	1-15829
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	62-1721435
Entity Address, Address Line One	942 South Shady Grove Road
Entity Address, City or Town	Memphis
Entity Address, State or Province	TN
Entity Address, Postal Zip Code	38120
City Area Code	901
Local Phone Number	818-7500
Written Communications	false
Soliciting Material	false
Pre Commencement Tender Offer	false
Pre Commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Common Stock, Par Value $0.10 Per Share [Member]
Document And Entity Information [Line Items]
Security 12b Title	Common Stock, par value $0.10 per share
Trading Symbol	FDX
Security Exchange Name	NYSE
0.450% Notes Due 2025 [Member]
Document And Entity Information [Line Items]
Security 12b Title	0.450% Notes due 2025
Trading Symbol	FDX 25A
Security Exchange Name	NYSE
1.625% Notes Due 2027 [Member]
Document And Entity Information [Line Items]
Security 12b Title	1.625% Notes due 2027
Trading Symbol	FDX 27
Security Exchange Name	NYSE
0.450% Notes Due 2029 [Member]
Document And Entity Information [Line Items]
Security 12b Title	0.450% Notes due 2029
Trading Symbol	FDX 29A
Security Exchange Name	NYSE
1.300% Notes Due 2031 [Member]
Document And Entity Information [Line Items]
Security 12b Title	1.300% Notes due 2031
Trading Symbol	FDX 31
Security Exchange Name	NYSE
0.950% Notes Due 2033 [Member]
Document And Entity Information [Line Items]
Security 12b Title	0.950% Notes due 2033
Trading Symbol	FDX 33
Security Exchange Name	NYSE

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